Correlation Between Grown Rogue and INC Research
Can any of the company-specific risk be diversified away by investing in both Grown Rogue and INC Research at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grown Rogue and INC Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grown Rogue International and INC Research Holdings, you can compare the effects of market volatilities on Grown Rogue and INC Research and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Grown Rogue with a short position of INC Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grown Rogue and INC Research.
Diversification Opportunities for Grown Rogue and INC Research
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grown and INC is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Grown Rogue International and INC Research Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INC Research Holdings and Grown Rogue is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Grown Rogue International are associated (or correlated) with INC Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INC Research Holdings has no effect on the direction of Grown Rogue i.e., Grown Rogue and INC Research go up and down completely randomly.
Pair Corralation between Grown Rogue and INC Research
Assuming the 90 days horizon Grown Rogue International is expected to generate 0.69 times more return on investment than INC Research. However, Grown Rogue International is 1.44 times less risky than INC Research. It trades about 0.04 of its potential returns per unit of risk. INC Research Holdings is currently generating about -0.18 per unit of risk. If you would invest 65.00 in Grown Rogue International on August 25, 2024 and sell it today you would earn a total of 1.00 from holding Grown Rogue International or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grown Rogue International vs. INC Research Holdings
Performance |
| Timeline |
| Grown Rogue International |
| INC Research Holdings |
Grown Rogue and INC Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grown Rogue and INC Research
The main advantage of trading using opposite Grown Rogue and INC Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grown Rogue position performs unexpectedly, INC Research can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in INC Research will offset losses from the drop in INC Research's long position.| Grown Rogue vs. Goodness Growth Holdings | Grown Rogue vs. C21 Investments | Grown Rogue vs. Delta 9 Cannabis | Grown Rogue vs. 4Front Ventures Corp |
| INC Research vs. AYR Strategies Class | INC Research vs. Verano Holdings Corp | INC Research vs. TILT Holdings | INC Research vs. Lowell Farms |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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